Discover Student Loans

Paying for College
1

<p>Yesterday, my daughter, a high school senior who has not committed to a college yet, got a mailing from Discover Student Loans.</p>

<p>Anyone else?</p>

<p>I hope that students consult with their parents and/or other smart people before signing up for a private loan like this. Here's a comparison chart on their website:
<a href="https://www.discover.com/student-loans/compare-loans.html"&gt;https://www.discover.com/student-loans/compare-loans.html&lt;/a&gt;&lt;/p>

<p>They apparently offer loans up to 100 percent of the cost of attendance. No thanks!</p>

2

<p>We started the process on this type of loan last year out of curiosity and attracted by the lowest stated interest rate. The rate we actually qualified for would have been higher than Parents Plus iirc. When questioned they told us debt to income ratio was a major factor is determining the interest rate. So even if the rate the first year is good, imagine how high it might get by year four if you had to keep borrowing. No way! </p>

3

<p>Thanks for sharing this - we got that mailer. I read it and kept it. Think I’ll shred it now …</p>

4

<p>Though there may be exceptions, the ones I know who checked this and other such offers, found out they needed a cosigner which shackles two people and credit histories to the loan, the terms were far less flexible and the interest rate was higher, surprisingly even with a parent with a good credit rating. But YMMV. I don’t think these are good options, and last to consider.</p>

5

<p>There’s no risk that a student will take a loan from Discover or any other private lender without parental involvement because the parents would need to co-sign.</p>